Skoda Auto India Growth Strategy 2026 Driven by Products and Reach

Skoda Auto India is moving into 2026 after recording its strongest-ever performance in the previous year, supported by rapid sales growth and rising global relevance. Central to the Skoda Auto India growth strategy 2026 is an intensified product offensive designed to strengthen the brand’s position in one of its most important markets.
According to Martin Jahn, board member for sales and marketing, Skoda achieved the number three position in Europe while posting solid growth across global markets. India has now become Skoda’s fourth-largest market after Germany, the Czech Republic, and the UK, underlining its strategic importance.
“We became No. 3 in Europe and achieved strong growth in overall global markets. India became our fourth market after Germany, Czech Republic and the UK. We have a very strong exports base in India for middle east, Vietnam and Africa. We more than double our sales and became no7 in the Indian market and we're happy we achieved it,” Jahn said.
Building on this momentum, Skoda Auto India is preparing an aggressive push across products and retail infrastructure. Ashish Gupta, Brand Director, said the focus in 2026 will be on expanding both dealership and service reach while executing multiple product actions during the year. The company has already grown its footprint to 325 customer touchpoints nationwide.
The strategy goes beyond volumes, with equal emphasis on ownership experience and accessibility across regions.
“We doubled our volumes and grew 107% in 2025. With a stronger portfolio, India is the growth engine for Skoda brand globally,” Gupta said.
He added that customer acceptance and trust made the milestone year particularly significant as the company prepares for its next phase of growth.
As part of the Skoda Auto India growth strategy 2026, the brand plans to increase market coverage to 90 percent from the current 80 percent, supported by 10 product actions during the year. The midsize SUV Kushaq, Skoda’s first model under the India 2.0 programme, remains a cornerstone of this approach.
The Kushaq has introduced several segment-first features such as a panoramic sunroof and front and rear seat massagers, helping it stand out in a crowded category.
“The Kushaq is more than just a rational product for us, it’s emotional,” Gupta said.
“It anchors the Skoda brand in India. With the updates, our aim is to strengthen the space it already occupies and stand out in a highly competitive segment. We owe it to our customers to deliver strong value while ensuring the product competes effectively.”
This product-led approach aligns with Skoda’s philosophy of democratising European engineering for Indian conditions. The strategy is built on three pillars: relevance, differentiation, and trust. With demand expanding beyond major cities, the company continues to adapt its offerings to local expectations while retaining its European engineering DNA.
The midsize SUV segment remains a key industry growth driver, having expanded by around 10–12 percent last year due to new launches and increasing premiumisation. Gupta expects the segment to broaden further with more choices across features, powertrains, and configurations, keeping customer interest high.
A major differentiator for Skoda has been its strong emphasis on automatic transmissions. The “Real Automatic” strategy reflects changing buyer behaviour, with automatics now accounting for nearly 35–40 percent of the Indian market. For Skoda, automatics already contribute about 65 percent of sales, with a target of reaching 70 percent penetration in 2026.
“Ease of mobility has become critical, whether you’re in a metro or a smaller city,” Gupta said.
“Concerns around fuel efficiency and maintenance have largely gone away.”
To reinforce this focus, Skoda plans to introduce an eight-speed torque converter automatic, aimed at enhancing driving comfort and everyday convenience.
The company is also assessing multiple powertrain options to address regulatory requirements and shifting customer preferences. CNG is being evaluated for the Kylaq, where demand in the sub-4m SUV segment can reach up to 25 percent, with potential application for the Kushaq as well. EVs remain essential from both regulatory and market perspectives, while hybrid technologies are under active evaluation at a group level.
Exports continue to be a strategic pillar, with India serving as an important manufacturing and export hub for the Volkswagen Group. ASEAN and other emerging markets offer additional growth opportunities, supported by increasing localisation across components, R&D, product development, communication, and management.
While the Kylaq contributes close to 40 percent of Skoda India’s volumes, Gupta downplays concerns around over-reliance. He notes that the sub-4m SUV segment represents about 30 percent of the Indian market, making strong contribution levels a natural outcome of the strategy.
Looking ahead to the Volkswagen Group’s target of achieving a five percent market share in India by 2030, Skoda Auto India is prioritising sustainable growth built on consistency and trust.
“Getting customers into the brand is one thing. Keeping them is harder,” Gupta said.
“Our focus will be on service expansion, excellence at every touchpoint and building long-term trust. That is the real foundation for success.”